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Subject:  Re: Poll: 401K Roll it? Take it? Date:  4/3/2007  4:59 PM
Author:  ziggy29 Number:  56556 of 88775

I'd roll it over to avoid penalties on the money. You can always cut back on future 401K contributions to pay down your debt -- this avoids penalties AND is more flexible to changing future conditions.

Another option if you are really, really, REALLY determined to use some of this money to pay down your debt (and determined not to listen to us!) might be to roll it over into an IRA and use Rule 72(t) to take distributions that can be used to pay down the debt more aggressively. I still think you're better off just cutting back on future contributions to pay it down more aggressively. You'd only have to do that for about 10 years since you're almost 50 now.

What is this "high" interest rate, by the way? If it's no more than about 8% I wouldn't even think of derailing my current retirement savings to pay it down.

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